When to have a PM company takeover when starting REI portfolio

[Faraz Rashid]

Hey,

I am a new REI in the Houston area. Currently, I am looking at a few deals and hoping to close on my first SFR in the next few months. As a graduate student and a full time employee with limited time, I am researching on PM companies in the Houston area. Trying to understand if having a PM company for 1-2 SFR property is needed at this early stage in my REI career. Is it better to manage a few on your own to understand how things work before you let a PM company take over? Also, If anyone has suggestions on great companies they have worked with or in general in the Houston Area, I would greatly appreciate it!

Thanks BP Community

[Cody L.]

When I started, I hired a property managment company as I was buying SFH out of state, and I had a very busy 9-5 job.

When I decided to get into real estate big time (well, 'big' for me back then -- buying an 8 unit) I managed it myself so I could learn.  Once I had a few hundred units I realized I was no longer an investor -- I was full time property manager.  But rather than hiring a management company, I just hired a property manager as an employee. 

So for you, if you're going to have just a small group of SFH, get a management company. But if you decide to really grow a portfolio of multi, try to manage them yourself at first to learn. Then as that grows, turn it over (or hire people)